TCPL in lead position to acquire maker of Ching’s Secret, valuation at Rs 5,500 crores

The proposed acquisition involves TCPL initially purchasing a substantial 65-70 per cent stake in Capital Foods from its three primary investors

In a new development, Tata Consumer Products Ltd (TCPL) has emerged as the frontrunner to acquire Capital Foods Pvt. Ltd., the renowned maker of condiments, food products, and ingredients under the Ching’s Secret and Smith & Jones brands. This announcement marks the end of weeks of protracted negotiations between the companies, according to sources with knowledge of the matter.

The proposed acquisition involves TCPL initially purchasing a substantial 65-70 per cent stake in Capital Foods from its three primary investors, with the possibility of acquiring the remaining shares over time. The estimated value of the company stands at an impressive Rs 5,500 crore. Notably, other contenders in the race included Nestle SA, the world’s largest food company, and Kraft Heinz Co.

Capital Foods has gained recognition over the years for its diverse range of products featuring authentic Indian flavours. These offerings encompass Ching’s Secret instant noodles, soups, condiments, curry pastes, and frozen entrees, as well as the Smith & Jones line of ginger-garlic paste, niche sauces, and baked beans.

While the legal documentation and final negotiation rounds are currently underway to determine the extent to which existing shareholders will retain their stakes or exit entirely, Kotak Mahindra is advising TCPL on this strategic move.